According to Reuters, the latest data from market research firm Rho Motion shows that global electric vehicle (EV) sales-including battery electric vehicles (BEVs) and plug-in hybrid electric vehicles (PHEVs)-rose by 24% year-on-year in May 2025, reaching 1.6 million units. The strong performance of the Chinese market helped offset slower growth in North America.
Rho Motion's data indicates that EV sales in China surged by more than 24% year-on-year to 1.02 million units in May. In Europe, EV sales grew 36.2% to 330,000 units. North America saw only a modest 7.5% increase to 160,000 units, while other global regions recorded a 38% year-on-year rise to 150,000 units.
This marks the first time China's EV market surpassed one million monthly sales, driven by robust domestic demand and aggressive export strategies from Chinese automakers-especially BYD. Charles Lester, data manager at Rho Motion, noted that BYD's exports to markets like Mexico, Southeast Asia, and Uzbekistan significantly boosted EV sales in those regions.
Lester also highlighted that fleet incentives in Germany and strong growth in Southern Europe contributed to the EV boom across the continent. In contrast, the expiration of EV subsidies in Canada negatively impacted demand in North America.
Globally, automakers are grappling with a 25% import tariff on vehicles entering the U.S.-the world's second-largest auto market-prompting many companies to revise their financial forecasts for 2025 downward. In Europe, Germany's new incentive policies for fleet buyers are expected to sustain EV sales through the second half of the year.
Although Tesla's Berlin-produced Model Y avoids U.S. import tariffs, the company continues to face pressure on its market share amid growing global production capacity and shifting trade dynamics.
Additionally, uncertainty around U.S. carbon emissions regulations and tariff policies under former President Trump has dampened EV market momentum in North America. While federal EV tax credits are still in place, they are set to be gradually phased out starting in 2026, further fueling consumer hesitation.
Charles Lester emphasized: "The defining feature of the global EV market in May was the widening gap between China's continued expansion and North America's stagnation."
